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Antitrust and Trade Regulation

Penn State Law

Journal Articles

Series

Sports

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Articles 1 - 2 of 2

Full-Text Articles in Law

Antitrust And Inefficient Joint Ventures: Why Sports Leagues Should Look More Like Mcdonald's And Less Like The United Nations, Stephen F. Ross, Stefan Szymanski Jan 2006

Antitrust And Inefficient Joint Ventures: Why Sports Leagues Should Look More Like Mcdonald's And Less Like The United Nations, Stephen F. Ross, Stefan Szymanski

Journal Articles

Antitrust law generally favors joint ventures that allow separate firms to integrate economic functions while continuing to compete as independent entities. In evaluating the risks to competition that joint ventures could pose, insufficient attention has been paid to the risk that joint ventures with market power may be structured so that the parties, acting in their independent self interest, will prevent the venture from providing innovative goods and services responsive to consumer demand. In these cases, it may be better if a single firm provided services rather than having them provided jointly.

We illustrate this problem by challenging the conventional …


Monopoly Sports Leagues, Stephen F. Ross Jan 1989

Monopoly Sports Leagues, Stephen F. Ross

Journal Articles

This Article argues that the government should break up both Major League Baseball and the NFL to provide for competing economic entities in each sport. Part I details the harm monopoly sports leagues cause in several different markets and explains why a competitive league structure can correct such harms. Part II discusses why regulatory solutions are poor substitutes for competition as a means of redressing these harms. Part III explains why neither baseball nor football is a "natural monopoly" and argues that no persuasive evidence suggests that rival leagues cannot exist in those sports. Part IV examines how the antitrust …